Stocks Erase Gains After ASML, Dollar Declines: Markets Wrap

(Bloomberg) — Asian shares erased gains after chip-equipment maker ASML Holding NV said it can’t fully meet demand, renewing concerns around the artificial intelligence trade. The dollar fell before a key US inflation report.

Futures for the Nasdaq 100 Index swung to a loss, while contracts for the S&P 500 and European shares trimmed gains. MSCI Inc.’s Asia Pacific equities index slipped 0.1% after earlier climbing as much as 0.7%.

While ASML said it can’t fully meet demand for the next two years, the Netherlands-based firm still upgraded the low end of its 2026 sales forecast. ASML shares dipped on Tradegate after the results.

The Kospi Index in South Korea — a bellwether for artificial intelligence and chip investments — slipped 1%, having earlier risen as much as 2.6%. SK Hynix Inc. erased its earlier advance to drop 2.4%.

Elsewhere, Brent crude rose 0.6% to $106.30 a barrel as a flare-up in Middle East attacks increased uncertainty over a recovery in energy shipments from the Persian Gulf. US crude advanced for a fifth day.

Sentiment was earlier lifted as New York Federal Reserve President John Williams said he saw no need for further tightening in 2027, though one more rate hike this year may be appropriate.

The comments came just ahead of Wednesday’s inflation data, which may reveal whether the Fed can take a less aggressive approach to raising interest rates next year.

Earnings remain a key test for the artificial intelligence trade as investors question whether billions of dollars in spending will generate commensurate returns. Wednesday’s consumer price index will also be closely watched for signs that elevated oil prices are feeding into broader inflation and complicating the interest-rate outlook.

“Today’s CPI numbers will be particularly important given the recent sharp swings in expectations for further Federal Reserve rate hikes,” Nick Twidale, chief market analyst at AT Global Markets in Sydney, wrote in a note. “A stronger-than-expected inflation print could quickly reignite expectations of further Fed tightening.”

Swaps are pricing in less than a 25% chance of a rate increase in October.

What Bloomberg’s Strategists Say…

“International investors are pulling out at a record pace from emerging Asian equity markets, excluding China. That boosts the likelihood that the region’s stocks will continue to underperform as they struggle to regain the fierce momentum that took the MSCI AC Asia Pacific Excluding Japan Index to a record in June.”

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Meanwhile, Treasuries broadly held their gains from Tuesday, with the benchmark 10-year yield at 5.20%, as traders looked ahead to Wednesday’s US CPI for further clues about the path of interest rates.

The dollar weakened against all its Group-of-10 peers, with Bloomberg’s gauge of the currency dropping for a second day. Gold steadied around $4,160 an ounce.

Meanwhile, the CSI 300 Index fell 0.3%, pushing Chinese stocks closer to a bear market. Skepticism is growing about the prospect of a heavy dose of support measures to revive the economy and investor confidence.

The benchmark has fallen more than 15% from its June peak, and is at the lowest level since August 2025.

The key event for Wednesday though is the US inflation data.

CPI is seen rising 0.6% after a 0.4% increase a month earlier, based on the median projection in a Bloomberg survey of economists ahead of the Bureau of Labor Statistics release. That would mark the largest advance in five months.

Aa higher reading than the estimate may see traders add to Fed rate-hike expectations.

“The bottom line is that higher long rates this year reflect both the higher expected policy path from the Fed and investors asking for more compensation to hold duration,” Allison Boxer at Apollo Global Management, wrote in a note.

Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 7:04 a.m. London time Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average rose 0.1% The MSCI Asia Pacific Index fell 0.2% The MSCI Emerging Markets Index was little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1205 The Japanese yen was little changed at 158.31 per dollar The offshore yuan was unchanged at 6.6926 per dollar The British pound rose 0.1% to $1.3270 Cryptocurrencies

Bitcoin was little changed at $83,357.29 Ether fell 0.3% to $2,500.02 Bonds

The yield on 10-year Treasuries was little changed at 5.20% Germany’s 10-year yield was little changed at 3.47% Britain’s 10-year yield was little changed at 5.45% Commodities

Brent crude rose 0.6% to $106.33 a barrel Spot gold fell 0.3% to $4,147.68 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Winnie Hsu, Ruth Carson and Lin Zhu.

©2026 Bloomberg L.P.